Bank Muscat to sell HDFC Bank stake

Bank Muscat said on Tuesday that it will sell its remaining holding in India's second largest private sector lender HDFC Bank within a month.

Bank Muscat said on Tuesday that it will sell its remaining holding in India's second largest private sector lender HDFC Bank within a month.

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The board of directors have confirmed its intention "to dispose of its remaining 0.5 per cent holding in HDFC Bank, India," Bank Muscat said in a regulatory filing with the Muscat Stock Exchange.

Oman's biggest lender further said, "Subject to market conditions and other disposal criteria, we expect the sale process to conclude within the next thirty days."

Earlier in March, Bank Muscat had said it will offload its entire holding in HDFC Bank. Bank Muscat held 9,051,724 equity shares, representing 2.13 per cent stake, in HDFC Bank as on December 31, 2008.

On March 17, the bank offloaded 40 per cent of its stake in HDFC Bank and on March 22, it said it has sold 81 per cent of its holding in the Indian lender.

Indian stock markets have rebounded from its recent lows and the Bombay Stock Exchange benchmark index Sensex has recovered over 100 per cent from its 52-week low of 7697.39 points on October 27, 2008.

HDFC Bank touched its 52-week high on June 12 at Rs 1,569. The shares are currently trading at Rs 1,529, down 0.06 per cent on the BSE, while Bank Muscat was trading at 0.700 Omani Riyals, up 2.66 per cent on the Muscat Stock Exchange.